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Summit Mortgage Weekly Rates

Friday, August 29th, 2014 at 2:12pm. 34 Views, 0 Comments.

COMMENTARYThe Commerce Department reported on Tuesday that Durable Goods Orders (items manufactured to last three-years or more) skyrocketed by 22.6% in July driven by a 317% surge in commercial aircraft orders- blowing past most economists' forecast calling for a gain of 12.6%. Such a report would normally have created a market surge and strongly increasing mortgage rates but after the dust cleared, that didn’t happen.  The "fly-in-the-ointment" was that 150 of the planes ordered last month were for expensive models, some of which are still under development. It could take up to 10-years before the increase in July 2014 aircraft orders actually filter through to the GDP report. Outside of transportation, orders were decidedly puny - falling 0.8% amid

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Tom Hardel Market Update

Tuesday, August 26th, 2014 at 3:03am. 38 Views, 0 Comments.

> Market Update

QUOTE OF THE WEEK... "It's not about how good you are, it's about how good you want to be." --Nicole Jacek, German award-winning graphic designer

INFO THAT HITS US WHERE WE LIVE... We all want to be the best and help make the housing market the best it can be. Housing took a big step ahead in July as Housing Starts blasted ahead 15.7% to an annual rate just over one million units. Starts are now up 21.7% over a year ago, with strong gains in the past year for both single family starts, up 10.1%, and multi-family, up 44.7%. New Building Permits zoomed up a nice 8.1% in July, also to a just over one million annual rate. Versus a year ago, single-family permits are up almost 4%, multi-family up just over 14%.

Monthly Housing Starts

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Summit Mortgage Weekly Rates

Friday, August 22nd, 2014 at 5:09pm. 57 Views, 0 Comments.

COMMENTARYMuch of last Friday's buying pressure of mortgage-backed securities reversed course this week as high level cease-fire talks between Russia and Ukraine begin and the situation in Iraq appears to be improving.  In addition, this week and next are the more heavily-vacationed weeks of the year for investors in both the credit and equity markets. With a number of market participants spending the next ten work days sipping Mai Tai's and applying sunscreen instead of trading, it is almost certain price volatility will probably be higher than usual due to the limited trading action. Trading activity won't really return to "normal" until a day or so after the Labor Day Holiday break. 

The coming week will feature the release of the July New Home

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Tom Hardel Market Update

Monday, August 11th, 2014 at 9:39pm. 70 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "Normalcy is not interesting." --Lindsay Lohan, American actress, model, producer, and recording artist

INFO THAT HITS US WHERE WE LIVE... If the troubled performer were earning her living in real estate, she might think differently about normalcy. For a few years now, the housing market has been anything but normal, so any return to stability is interesting indeed. With a major real estate information provider reporting home price gains moderating in June, their chief economist observed, "This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble." 

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Summit Mortgage Weekly Rates

Saturday, August 9th, 2014 at 3:00pm. 100 Views, 0 Comments.

COMMENTARYNews of the week produced little effect on mortgage rates until Europe intervened once again.  Potential U.S. airstrikes in Iraq, resumed military conflicts in Gaza between Palestinian militants and Israel and NATO calling for Russia "to step back from the brink" of war in Ukraine has created a round of "flight-to-quality" buying of U.S. Treasury and agency eligible mortgage-backed securities as current global uncertainty reduces the attractiveness of riskier asset classes.

These news events are temporarily supporting the prospects for steady to perhaps fractionally lower mortgage interest rate ahead. Notice the key word "temporarily." At the first sign the current headline grabbing conflicts may be de-escalating -- a

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Tom Hardel Inside Newsletter

Monday, August 4th, 2014 at 9:52pm. 89 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "The trees that are slow to grow bear the best fruit."--Moliere, French playwright and actor

INFO THAT HITS US WHERE WE LIVE... If the great French dramatist were alive today, he probably wouldn't be concerned by signs of slower growth in the housing market. Perhaps we shouldn't be either. Pending Home Sales dipped a miniscule 1.1% in June, but climbed for three straight months before that. This National Association of Realtors (NAR) index of contracts signed on existing homes was also above the 100 "average" level of contract activity for the second month in a row. The NAR's chief economist said he expects existing home sales to edge up in the second half of the year.

That economist also observed, "The good news is…

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Summit Mortgage Weekly Rates

Friday, August 1st, 2014 at 4:44pm. 79 Views, 0 Comments.

COMMENTARYOn a weekly basis during football season, you’ll invariably hear a Coach say after an upset that this is why they play the games. Same can be said for predicting the future of mortgage rates. Last week we cautioned that this week’s economic GDP and Jobs report had the potential to significantly increase mortgage rates.  Wednesday’s GDP report did not disappoint showing a 4.0% annualized pace during the second-quarter, the strongest improvement in this index since Q3 of 2013, and well ahead of the consensus estimate of economists calling for a gain of 3.0%. Mortgage investors were more than a little surprised which sent all of them scrambling to nudge mortgage interest rates fractionally higher. 

So what happened today with the Jobs report

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Tom Hardel Lending Newsletter

Tuesday, July 29th, 2014 at 11:23am. 131 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "I've had a lot of worries in my life, most of which never happened."--Mark Twain, American author and humorist

INFO THAT HITS US WHERE WE LIVE... A big worry for some is that the housing recovery will collapse and people of that persuasion felt they got some support last week. New Home Sales were off 8.1% in June to a 406,000 annual rate. However, the median price of new homes sold in June was $273,500, 5.3% higher than a year ago and the average price was 8.3% higher. We are not back in a housing recession. Home building has stayed in an upward trend and new home sales have hovered in the same range for two years. Also, the New Home Sales report is for single-family homes, so the slight shift to

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Summit Mortgage Weekly Rates

Friday, July 25th, 2014 at 2:58pm. 126 Views, 0 Comments.

COMMENTARY: This week’s slightly increasing rates were squarely affected by thoughts of next week’s all important Job’s report on Friday.  On Tuesday, NAR reported that existing home sales in June were at the highest levels in 8 months. With many of the fundamental drivers of housing either improving or holding steady, the outlook for the rest of the year and into 2015 looks decent. Job growth will be the key, and the prospects for further improvement in the labor sector have improved notably over the past three months.  As part of this scenario however is the unfortunate truth that mortgage rates tend to increase as the economy does better.  Kind of a pick-your-poison type of choice I guess.  Further proof of positive economic strides were shown

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Tom Hardel Market Update

Tuesday, July 22nd, 2014 at 7:11am. 100 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "How wonderful that we have met with a paradox. Now we have some hope of making progress."--Niels Bohr, Danish physicist 

INFO THAT HITS US WHERE WE LIVE... The dictionary defines "paradox" as a seemingly self-contradictory statement that when investigated may prove to be true. Last week's housing news indeed presented a paradox. Housing Starts took a hefty 9.3% drop in June while the National Association of Home Builders (NAHB) reported member confidence at a 6-month high! In fact, the NAHB builder index rose to a reading of 53, reflecting good sales conditions and a positive outlook going forward. The NAHB Chairman offered, "This is the first time that builder confidence has been above 50 since January and an…

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